1.Which of the following statement represent a common purpose of estate planning
ID: 2740412 • Letter: 1
Question
1.Which of the following statement represent a common purpose of estate planning?
I. The best estate plan is always one that minimized taxes.
II. Intestate successon laws generally provide for he distribution of property in accordance with a decedant’s wishes
a.I only
b.II only
c.Both I and II
d.Neither I nor II
2.Which of the following is an example of an income tax?
A. An employment tax, such as the Social Security tax
B. An estate or gift tax
C. A tax on liquor and cigarettes
D. A sales tax
3.The primary purpose of estate planning is to assure that:
A. Property is distributed according to its owner’s wishes
B. Taxes are minimized, if not avoided
C. The distribution of the estate avoides the probate process
D. All heirs are euqitably treated
4.The purpose of the probate process is to:
A. Determine that the Will distributes property according to the state’s intestacy laws
B. Validate the Will and supervise the distribution of property
C. Collect estate taxes for the federal government
D. Determine if the distribution is equitable to all parties
5.A pension plan is considered fully insured for the plan year if it meets all of the following requirements, except
A. the plan is funded exclusively by the purchase of individual insurance contracts
B. the plan permits only highly compensated employees the right to purchase life insurance contracts from the plan at cash surrender value
C. no rights under the contracts have been subject to a security interest during the plan year
D. premiums have been paid without lapse (or the policy has been reinstated after a lapse)
E. no policy loans are outstanding at any time during the plan year
6. Which of the following statement concerning gifting is (are) correct?
I. For gift tax purposes, gift splitting treats the transfer as though each spouse made on-half of the gift.
II. The donee’s basis in the gifted property is the adjusted basis of the donor.
a.I only
b.II only
c.Both I and II
d.Neither I nor II
7.All of the following are ways that proprety can be transferred EXCEPT
A. Distributed at death
B. Sold or exchanged for valuable consideration
C. A promise to sell the property in the future
D Made as a gift of either present or future interest
Explanation / Answer
.1. Which of the following statement represent a common purpose of estate planning?
I. The best estate plan is always one that minimized taxes.
II. Intestate successon laws generally provide for he distribution of property in accordance with a decedant’s wishes
d.Neither I nor II
3.The primary purpose of estate planning is to assure that:
A. Property is distributed according to its owner’s wishes.
4.The purpose of the probate process is to:
B. Validate the Will and supervise the distribution of property.
5.A pension plan is considered fully insured for the plan year if it meets all of the following requirements, except
B. the plan permits only highly compensated employees the right to purchase life insurance contracts from the plan at cash surrender value.
6. Which of the following statement concerning gifting is (are) correct?
I. For gift tax purposes, gift splitting treats the transfer as though each spouse made on-half of the gift.
II. The donee’s basis in the gifted property is the adjusted basis of the donor.
c.Both I and II
7.All of the following are ways that proprety can be transferred EXCEPT
C. A promise to sell the property in the future
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